Many people who have turned 30 simply don’t pay enough attention to their retirement needs. Most feel like they have plenty of time to prepare for retirement and put off the issue until in their 40’s. But the truth is the earlier you start to save, the better prepared you will be for retirement. Today, we are going to learn some moves that you should be making in your 30’s that will prepare you for retirement.
Take Full Advantage of Your 401K
If the company you are working for is matching your 401K contributions, it’s time to take full advantage of this program. Most companies will offer .50 cent on the dollar if you contribute a certain amount. Many companies require this amount to be 6% of your total earnings. While this may seem like a lot of money to be putting back, it’s a great way to build up savings fast. On the other hand, not taking advantage of this offer is like flushing free money down the toilet.
Work More When You Can
If your company offers overtime hours, take advantage of them. By working just a few hours extra a week, the money you will earn will really add up. But instead of spending this overtime money on items or paying bills, place it in a retirement fund. Many companies are now offering overtime because the economy has gotten better. So, make sure to sign up for some extra hours so that you can grow your nest egg much faster. If you are a bit shy about asking for more hours, there are tons of guides online that will help you learn how to approach your boss. Another way to get some overtime is by working for others who need to take time off. Taking on an extra shift will mean more money for retirement that you can enjoy later in life.
Put Those Yearly Bonuses to Good Use
It might be tempting to spend your yearly bonus on something nice for yourself. But why not apply part of it to your savings? While you can take some of it and buy something you want, the rest should go into a savings account. Over the years, these bonuses can really start to add up. Additionally, if you receive a tax refund at the end of the year, make sure to use part of it for savings. By combining this with your bonuses, you will have a nice retirement plan to work with and less to worry about when you get older.
Start Thinking About Buying a Home
Saving for retirement doesn’t have to always involve saving money. One of the biggest investment you will ever make is buying a home. For those of you in your 30’s, this is the perfect time to move out of that apartment and buy a house! While this may seem like a scary prospect at first, you will be making an investment for your future. Instead of paying rent to your landlord, you will be investing that money into a property that will go up in value over time. The best part is your home will be completely yours and you will never have to worry about things rent increases. And, once you’ve paid your mortgage, you’ll be able to live rent free.
If you are still in your 30’s, now is the time to start planning for retirement. By starting now, you will have plenty of time to build up a nice nest egg. Remember, the longer you wait, the less money you will have in retirement.